Americans are carrying more debt than ever before.
Markets-focused newsletter The Kobeissi Letter posted on X that, “Total household debt is now up +60% over the last 10 years and total credit card debt is up +50% since 2020. Meanwhile, delinquency rates on subprime auto borrowers are at a record 6.1%. Americans are drowning in debt.”
According to the Federal Reserve Bank of New York, total household debt in the United States rose to a record $18.6 trillion in the third quarter of 2025.
That includes all-time highs in mortgages, auto loans, student loans, and credit card balances.
The breakdown is staggering. Mortgage debt climbed to $13.1 trillion. Auto loans held steady at $1.66 trillion, while student loan debt rose to $1.65 trillion.
Credit card balances also jumped, reaching $1.23 trillion. These increases pushed overall household debt up 1% from the previous quarter and $642 billion higher than one year ago, according to Reuters.
“Household debt balances are growing at a moderate pace, with delinquency rates stabilizing,” said Donghoon Lee, economic research advisor at the New York Fed.
But even as most borrowers continue to make their payments, cracks are starting to show.
Delinquency Rates Tell a Deeper Story
About 4.5% of all household debt is now in some stage of delinquency. While still far below the levels seen during the 2008 financial crisis, it’s the highest rate since early 2020.
Among people aged 18 to 29, the numbers are worse. Serious delinquencies, defined as being 90 days or more past due, have surged to 5% for this age group. The Hill reported it was more than double the rate just a year earlier.
Student loans are driving much of that stress. The New York Fed reported that 14.3% of student loan accounts entered serious delinquency last quarter, a huge jump from just 0.77% a year earlier.
Overall, 9.4% of all student loan debt is now more than 90 days overdue or in default, compared to 10.2% in Q2 and 7.8% in Q1, indicating rapid movement into financial distress.
A Widening Economic Divide
Despite the rise in debt, many higher-income Americans are still spending freely.
Federal Reserve Chair Jerome Powell said, “There’s a bifurcated economy… consumers at the lower end are struggling and buying less and shifting to lower-cost products, but at the top, people are spending.”
This growing divide mirrors other recent findings. A report from TransUnion shows that both subprime and super-prime borrowers are increasing, suggesting a polarization in Americans’ financial health.
Michele Raneri, vice president at TransUnion, said, “It’s no surprise we’re seeing the sharpest growth in credit card and auto activity within those tiers.”
Meanwhile, nearly 175 million consumers are carrying credit card balances, with the average debt per borrower now at $6,523.
Though delinquency rates for mortgages remain relatively low thanks to tight lending standards and high home equity, the overall picture shows mounting financial strain, especially for younger and lower-income households.
As the economy continues to show signs of slowing, especially in the labor market, experts warn that more Americans could fall behind on their debts in the coming months.
For many, the rising numbers aren’t just statistics, they reflect real, everyday struggles. People are juggling student loans, watching credit card interest pile up, and worrying about keeping up with car payments. It’s getting harder to stay afloat.
Unless wages rise meaningfully or borrowing becomes more affordable, that pressure isn’t going anywhere.